Microsoft executives are asking why CEO is feeding rivals' products before his own
Microsoft is facing internal and investor scrutiny over its massive $190 billion AI capital expenditure as the company struggles to prioritize its own products. Executives are concerned that compute resources are being diverted away from internal projects, leading to reliance on competitors like Amazon and Google for infrastructure.
Why it matters
This highlights the growing pains and strategic friction in the AI arms race, where even tech giants are struggling to balance infrastructure demands with product development.
Three years ago Satya Nadella was the man who started the AI race. In February 2023 he stood in front of a packed audience outside Seattle, unveiled an AI-powered Bing, and told Google the fight was on. CNN Business made him CEO of the Year. One former Microsoft executive told Business Insider he was "like a superhero" back then.The scoreboard reads differently now. Microsoft's stock is down more than 24% from a year ago, the worst showing in the Magnificent 7. Copilot trails ChatGPT and Claude. Xbox's boss has called the business "not healthy".
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